GAMING HARDWARE MARKET REPORT OVERVIEW
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The global gaming hardware market size was USD 2169.89 million in 2020 and is projected to grow to USD XX million by 2031, at a CAGR of 8.3% during the forecast period.
Gaming hardware is powered by high-quality components and gaming features to provide an optimal playing experience to the users. Increasing demand for technologically advanced gaming systems is expected to fuel the product demand rapidly. Improving graphics and a variety of games is expected to boost the consumer's demand for powerful gaming equipment. It helps gamers experience next-generation gaming by providing access to realistic environments and models. It provides an immersive gaming experience to gamers and provides access to the internet.
The emergence of next-generation gaming engines and the development of next-generation games are expected to attract consumer attention to powerful hardware. Increasing the adoption of handsets such as smartphones is expected to improve portability and accessibility. Consumer's evolving preferences towards high performance are expected to fuel the gaming hardware market development.
COVID-19 Impact: Semiconductor Shortage and Lack of Components to Impede Industry Progress
The COVID-19 pandemic has negatively affected several markets globally. expected to grow slowly during the COVID-19 pandemic. The spike in CAGR is attributable to the gaming hardware market growth and demand returning to pre-pandemic levels once the pandemic is over.
The COVID-19 pandemic has adversely affected several industries globally. Halt on manufacturing and transport has led to the closure of several semiconductor manufacturers, which, in turn, has resulted in the lack of resources required to produce gaming consoles. The lack of semiconductor manufacturers and raw material shortage lead to disruption in the supply chain. These factors lead to the lack of sales and losses. The shortage of semiconductors may adversely affect electronics manufacturer's annual performance. Despite the adoption of part-time shifts and reduced capacities, several manufacturers are unable to meet the demand for gaming consoles in the market. Further, restrictions imposed on manufacturing activities may lead to slow growth.
LATEST TRENDS
"Increasing Demand for 4k Games and Ray Tracing Feature to Boost Console Sales"
The rising demand for powerful gaming hardware is expected to boost demand for advanced gaming platforms. Rising demand for advanced hardware is expected to increase product demand drastically. The increasing popularity of 4k game support and ray tracing features is expected to boost demand for advanced gaming equipment. Sony and Xbox provide excellent frame rate support and ray tracing feature for 4k games, which, in turn, is expected to increase their sales drastically. The incorporation of ray tracing enables users to experience excellent dynamic range and lighting while gaming. The development of advanced artificial intelligence and machine learning enables users to seamlessly experience games. Gaming consoles utilize advanced heat sink features to eliminate risks regarding damage. It reduces throttle and improves gaming performance.
Manufacturers aim to develop advanced hardware that is accessible to users and satisfies their gaming requirements. The incorporation of 4k enhances the quality of models and textures of gaming. Additionally, the incorporation of virtual reality (VR) is expected to propel the growth of the gaming hardware market.
GAMING HARDWARE MARKET SEGMENTATION
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- By Type Analysis
"By type, the market is segmented into the camera, handsets, controller, handheld, and standard consoles."
The handsets segment is expected to dominate the market because of the adoption of smartphones and tablets globally. Increasing popularity regarding mobile games such as PUBG is expected to boost its demand drastically. Manufacturers provide high-performance chipsets in smartphones to satisfy consumers' gaming performance, which, in turn, is expected to fuel the gaming hardware market progress.
- By Application Analysis
"Based on application, the market is classified into residential and commercial. "
Commercial gaming is the leading segment because of its adoption in military and aerospace training. It provides accurate directions and training to pilots, soldiers, and other military personnel and enhances their skills. Further, the emergence of several independent and triple-A game developers such as naughty dog, WB Montreal, Rockstar Games, and others is expected to bolster industry development.
DRIVING FACTORS
"Rising Focus on the Development of VR Headsets to Foster Market Development"
Manufacturers focus heavily on the development of VR headsets that provide excellent clarity and gaming performance. VR provides an enhanced user experience to consumers and improves their gaming experience drastically. Manufacturers focus on developing VR headsets with a gyroscopic feature that improves response time and amplifies the gaming experience. Recent VR headsets support excellent haptic triggers that improve the sense of realism while gaming. Studios such as Netflix collaborate with VR manufacturers to provide excellent VR gaming based on successful franchises. For example, Game developers such as WB Montreal, and others focus heavily on the development of immersive VR games such as Batman: Arkham VR to enhance user's gaming experience. The rising focus on VR gaming is expected to boost demand for high-performance gaming equipment.
"Increasing Smartphone Gaming Trends to Facilitate Industry Progress"
The emergence of games such as PUBG mobile, Free fire, Call of Duty Mobile, and others is expected to increase the demand for powerful gaming chipsets in smartphones. The increasing adoption of smartphones increases accessibility and performance. Manufacturers focus on developing advanced graphics processing units (GPU) and central processing units (CPU) in smartphones to improve the gaming experience and increase convenience. It is an extremely portable and effective option for gaming and enables game developers to expand their reach. The development of mobile games with excellent graphics and free-to-play options is expected to increase smartphone sales. The rising popularity among the younger population regarding mobile games is expected to boost its adoption. These factors are likely to drive the gaming hardware market growth.
RESTRAINING FACTORS
"Higher Installation Costs, Reliability Issues, and Lack of Availability to Hinder Market Progress"
Higher installation costs of gaming hardware and components lead to a lack of sales. Small manufacturers adopt cheaper and less powerful hardware that provides poor performance. Issues regarding gaming machine's reliability are expected to lower sales. Further, the lack of semiconductor chipset and gaming components stock is expected to hinder the market's progress.
GAMING HARDWARE MARKET REGIONAL INSIGHTS
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"Evolving Consumer Preference and Rapid Development of Digital Infrastructure to Foster Growth in North America"
Regionally, the market is grouped into Europe, North America, Asia-Pacific, South America, and the Middle East & Africa.
North America is projected to dominate the gaming hardware market share because of evolving consumer preferences and increased spending capacity. The development of digital infrastructure and technological advancements leads to the adoption of advanced gaming hardware. Further, the presence of manufacturers such as Microsoft, Nvidia, and others is expected to boost market progress.
Asia-Pacific is the second-largest market shareholder because of increasing smartphone sales in developing countries such as India, Japan, China, and others. The presence of established gaming hardware companies such as Sony, Nintendo, and others is expected to boost gaming hardware's demand. These factors are likely to propel market growth.
In Europe, the presence of several semiconductor and component manufacturing industries is expected to boost demand for gaming hardware. Additionally, evolving consumer preferences and rising spending capacity are expected to boost industrial development.
KEY INDUSTRY PLAYERS
"Incorporation of Online Gaming to Help Manufacturers Grow"
The prominent companies operating in the market invest heavily in the incorporation of online gaming platforms to attract consumers. The emergence of several online multiplayer games enables manufacturers to incorporate 5G and advanced internet components in gaming devices. This factor is expected to boost their brand presence. Further, heavy investments in research and development are expected to improve their product quality and satisfy consumer demand. In addition, the incorporation of advanced production strategies is expected to boost the product's quality, reduce labor costs, multiply production, increase operational efficiency, and improve their annual revenues.
List of Market Players Profiled
- Microsoft
- Nintendo
- Sony
- NVIDIA
- Madcatz
- V-MODA
- Razer
- A4TECH
- Scuf Gaming
- Logitech
- Venom
- Turtle Beach
INDUSTRY DEVELOPMENT
- August 2021: Netflix provided a VR gaming booth using striker VR headsets and VR guns for its hit "Army of the Dead" franchise.
REPORT COVERAGE
This report offers an analysis regarding the leading segments and latest market trends. It comprehensively discusses the impact of COVID-19 and the driving and restraining factors. It observes the regional developments and the strategies devised by the market's prominent players. It informs readers about the trends and the strategies that are responsible for the industry's growth.
Frequently Asked Questions ON Gaming Hardware Market
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What CAGR is the gaming hardware market supposed to grow at in 2031?
The gaming hardware market is expected to grow at a CAGR of 8.3% during the forecast period.
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Which are the driving factors of the gaming hardware market?
Increasing smartphone gaming trends and rising focus on the development of VR headsets are expected to drive the gaming hardware market growth.
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What are the current trends that will influence the gaming hardware market in the next few years?
Increasing demand for 4k games and ray tracing features are the recent trends influencing the market progress.
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Which are the top companies operating in the gaming hardware market?
Microsoft, Nintendo, Sony, NVIDIA, Madcatz, V-MODA, Razer, A4TECH, Scuf Gaming, Logitech, Venom, and Turtle Beach are the top companies operating in the gaming hardware market.